I'm going to have to refer you to the service manual unless someone else can weigh in. It has been at least 3 and probably 4 years since I did mine and two Fords and a Cub in between to confuse an already faulty memory. I am thinking that outer bearing is gone if you hear grinding. I would pull the axle and give the whole thing a once over with the intent of replacing the bearing and anything else I could get at while I was in there. You don't want to move it around too much until you get to the source of the noise. Could be the bearing but from your description it is pretty bad and could be the the surfaces that the bearing protects. Time to get dirty.
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Today's Featured Article - History of the Nuffield Tractor: Conclusion - by Anthony West. In the last piece I mentioned that Nuffield had reached the stage where they had chosen to drop the "Universal" from production. The two new models were given three figure numbers, instead of "three" and "four". Model numbers were introduced to help farmers and dealers instantly recognize the engine size and horsepower of the tractor, the 4/60 had a four cylinder diesel engine which developed 60 bhp at 2,000 rpm. The 3/42 had a 3 cylinder diesel engine which produced 42 bhp at 2,000 rpm. Th
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